Page 10 - AsianOil Week 30 2022

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Sinopec, Ineos sign downstream deals

INVESTMENT CHINA’S Sinopec and UK-based chemical build a new 500,000 tpy high-density polyeth-
and energy player Ineos have signed three ylene (HDPE) plant in Tianjin. In addition, the
petrochemical deals with a combined value companies are planning to use this joint venture
of $7bn. to build at least two further 500,000 tpy HDPE
According to a July 28 statement, Ineos has facilities in the future to produce Ineos-grade
agreed to acquire a 50% stake in Sinopec’s Shang- pipe under licence.
hai SECCO Petrochemical subsidiary, which Ineos said in the announcement that it saw
currently has a production capacity of 4.2mn China as a key growth region. The agreements
tonnes of petrochemicals. The stake is valued at with Sinopec “significantly” extend the UK com-
CNY10.5bn ($1.6bn). pany’s petrochemicals business in China, with a
Under the second agreement, Ineos agreed focus on products where it has some of the lead-
to establish a 50:50 joint venture with Sinopec ing proprietary technologies, it added.
that will develop acrylonitrile butadiene styrene “These agreements significantly reshape
(ABS) capacity of up to 1.2mn tonnes in China in Ineos’ petrochemical production and technology
an effort to meet rapidly growing demand. This in China,” stated Ineos’ chairman and CEO, Jim
will include a 600,000 tonne per year (tpy) plant Ratcliffe. “We are pleased to make these major
that is already under construction by a unit of investments with Sinopec in areas that provide
Ineos in Ningbo that will be absorbed into the the best growth opportunities for both compa-
new joint venture. The partners are also planning nies. Both parties recognise the potential for
to build two additional 300,000 tpy ABS plants, closer collaboration across a number of other
and have identified Tianjin as the location for areas as we look ahead,” he added.
one of these facilities, though the location of the Each of the three deals is anticipated to close
second has yet to be decided. before the end of the year and will be financed
Under the third agreement, Ineos and Sino- through a combination of internal and external
pec will establish another 50:50 joint venture to financing, according to the statement.™

Japan’s imports of Russian oil hit zero in

June, South Korean imports down 78%

PERFORMANCE JAPAN’S imports of Russian crude oil registered LNG imports during 2021.
at zero for the month of June, the Japanese Min- South Korea is also cutting its Russian oil
istry of Finance has said in a preliminary report. imports, which fell 78% year on year during June
Russian crude imports during May amounted to to 706,524 bpd, according to the Korea Customs
49,218 barrels per day. By comparison, in June Service. Korea’s imports of Russian crude have
2021, Japan imported 107,942 bpd, according to steadily declined for the last four months, and
official data. the country is anticipated to completely phase
Japan’s imports of Russian coal also declined out Russian crude imports by the end of the year.
during June by nearly 60% from a year ago to For the first half of 2022, Russia supplied
765,000 tonnes. Coal imports were down from 17.61mn tonnes of oil to South Korea, down by
the month of May, during which Japan imported 37% from 28.13mn tonnes during the first half of
991,000 tonnes of Russia coal. As with oil, Japa- 2021. South Korea imported a total of 500.22mn
nese firms are also seeking to phase out imports barrels of oil from global suppliers during the
of Russian coal. Russia has been a big supplier first six months of this year, nearly 7% above
of thermal coal and coking coal to Japan, which imports of 468.25mn barrels for the same period
also relies heavily on imports from Australia. in 2021.
Japan’s moves to reduce Russian energy South Korean refiners are reported to be
imports are in keeping with commitments keeping a close watch on crude shipment costs
made by G7 leaders in May to phase them out and may be seeking to import more oil from the
in response to the Russian invasion of Ukraine. Middle East rather than crude from farther afield
However, imports of Russian LNG to Japan that could prove more expensive.
increased by more than 10% during June, official Both Japan and South Korea are reported to
data showed. Most Russian LNG is delivered to be taking measures in order to steer clear of the
Japan through long-term contracts, but no new sanctions that have been imposed of Moscow
contracts are expected to be agreed in future, for its attack on Ukraine and to avoid reputa-
although Russia did supply Japan with 9% of its tional risk.™

P10 www. NEWSBASE .com Week 30 29•July•2022